💨 Abstract

The article discusses the security of 401(k) plans, emphasizing that while they are typically not FDIC-insured, they have other protections. Investments like stocks, bonds, and mutual funds within a 401(k) do not receive FDIC insurance, but they might be covered by an ERISA fidelity bond. If custodians fail, the Securities Investor Protection Corporation (SIPC) provides insurance up to $500,000.

Courtesy: wtop.com